Internal Control Policies

Southern Mallee District Council
Policy Register
Internal Control Policies and Procedures

Keywords:
Reference Number: Strategic Plan: Classification: First Issued/Approved: Review Frequency: Responsible Officer(s): Council File Reference: Applicable Legislation: Relevant Policies: Related Procedures: Delegations: Annually Manager Corporate Services Public Corporate Policy
INTERNAL CONTROL FRAMEWORK

Introduction The system of internal control is the plan of the organisation and all methods and procedures adopted by management to assist in achieving Council's objective of ensuring as far as practicable, the orderly and efficient conduct of its business. This includes the adherence to management policies, the safeguarding of assets, the prevention and detection of fraud and error, the accuracy and completeness of accounting records, and the timely preparation of reliable financial information. The system of internal control extends beyond the matters, which relate directly to the functions of the accounting systems, and relates to every aspect of Council's operations. Internal controls are policies and procedures that Council has established to provide reasonable assurance that its objectives will be achieved. These internal control policies and procedures are prepared pursuant to the requirements of Section 125 (Division 2 of Part 3) of the Local Government Act 1999. Objective of procedures The objective of the procedure is to: Ensure all activities have a clear and logical audit trail and there is a coordinated approach to procedures Ensure the policy and Councils practices and procedures meet the highest level of accountability. INDEX 1. Purchases and Payments System
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2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.
Payroll System General Receipts and Debtors System Rates Fixed Assets Stock General Ledger Computer System Registers Responsible/Authorised Officers Permits Controlling Authorities Tenders Quotations for Works, Services & Equipment Provision of Services Purchasing of Goods Services and Equipment Sale or Disposal of Land and other Assets Fees and Charges (not set by statute) Issue of Purchasing Cards and/or Fuel Cards
INTERNAL CONTROLS ACCOUNTING CONTROL PROCEDURES 1. 1.1 PURCHASE AND PAYMENTS SYSTEM Purchase Orders Purchase orders are to be used for the purchase of all goods and services and signed by a responsible officer as designated by the Chief Executive Officer. Purchase orders are to be pre-numbered and raised in triplicate to allow copies to be forwarded to the accounts department (yellow) for the committal of goods, the supplier (white) and a copy to be retained in the purchase order book (green). Purchase orders shall include the following details: (a) supplier's name, address and ABN (if available); (b) details of goods ordered; (c) agreed prices where available - or an estimate if firm price is not available; and, (d) job number or general ledger code Unused purchase order books are to be held by a responsible officer, with details maintained to whom purchase order books have been issued.
Internal Control Policies and Procedures.
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All personnel who have the authority to sign purchase orders are directed to include job numbers or description on all orders and not order any goods or services for which there are no unexpended budget funds. It shall not be necessary to issue an official order for (a) Fees or payments imposed under any Act. (b) Professional services and insurance. (c) Payments pursuant to any court order binding upon a Council.
1.2
Works Orders Works orders are to be used for the purchase of all goods and services and signed by a responsible officer as designated by the Chief Executive Officer. Works orders are to be pre-numbered and raised in triplicate to allow copies to be forwarded to the accounts department (pink), the supplier (white) and a copy to the retained in the order book (blue). Works orders shall include the following details: (a) suppliers name, address and ABN (if available); (b) details of goods ordered; (c) agreed price where available or an estimate if firm price is not available; (d) job number including cost centre and element type or general ledger code. Unused Works order books are to be held by a responsible officer, with details maintained to whom purchase order books have been issued.
1.3
Processing Invoices Invoices are not to be processed unless a purchase order (including all details as previously stated) or direct authorisation is attached and receipt of goods evidenced. The supplier must provide Council with a tax invoice (for all invoices over $50.00) in compliance with Goods and Services taxation (GST) legislation. If GST is not applicable to the good or service supplier must supply their ABN (Australian Business Number). An invoice without an ABN will not be processed unless a Statement by Supplier has been signed and received stating the reason for not quoting an ABN to Council. The Chief Executive Officer shall cause all accounts for payment by Council to be certified as to: (a) The receipt of the goods or services being in accordance with the relevant official order. (b) The prices charged being fair and reasonable. (c) The calculations and additions being correct. The Chief Executive Officer shall cause a record of all accounts paid to be presented to Council.
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The Manager Corporate Services shall forward with the monthly Council agenda papers to elected members a schedule of all accounts paid for the month
1.4
Payments by EFT and Laser Cheques All cheques and EFTs are to be printed/written and issued in sequential order. All cheques are to be crossed "Not Negotiable". For cheques the following must be authorised by two authorised signatories: Creditors to be Paid List Cheques For EFT Payments the following must be authorised by two authorised signatories. Creditors to be Paid List EFT Payment List
1.5
Reconciliations Suppliers statements are to be reconciled monthly to the creditors ledger; and discrepancies/reconciling items are promptly followed up by the Creditors Officer. Creditors ledger balances are to be regularly reviewed and unusual items such as debit balances are to be investigated by the Manager Corporate Services. New credit accounts are not opened without authorisation from the Manager Corporate Services.
2. 2.1
PAYROLL SYSTEM Changes in Employee Details No employee shall be added to payroll records or paid without receipt of the appropriate forms, including employment declaration forms. Employee history files are to be maintained for all employees. Files should contain employment details and contracts, authorisations for payroll or deduction changes, annual leave, long service leave and sick leave entitlements. No adjustments are made to employee records, ie, names, addresses, deduction details without receipt of written authorisation from the employee.
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No adjustments are made to salary or wage rates without written authorisation from the Chief Executive Officer or Manager Corporate Services. On termination employee files are to be immediately removed from current records and filed in past employees records. Employee payment details should also be terminated in the computer system.
2.2
Time Recording All staff are to complete a timesheet, which is signed by the employee and their supervisor to authorise overtime, sick leave, etc. Outside staff are to provide daily timesheets while other staff are to provide fortnightly timesheets. All timesheets are to be marked as evidence of processing. The Chief Executive Officer shall cause to be maintained records in respect of each officer and employee showing gross salary or wages and tax and details of all other deductions. A payroll report compare gross pays to last time paid to be reviewed and signed by Payroll Officer or Manager Corporate Services to check for unusual rates, salary amounts or employee names. In respect of all wages paid timesheets shall be maintained recording: (a) (b) (c) (d) Hours of attendance. Allocation of time worked to jobs. Sick Leave. Annual Leave taken.
2.3
Leave Entitlements All employees applying for leave are to complete a Leave Application Form in advance. This form is to be authorised by the appropriate responsible officer and passed on to the payroll clerk. Leave Application Forms are to be filed in the employee's history file. Annual leave and long service leave is not to be paid without receipt of the appropriate authorised form. Leave entitlements are to be immediately updated to reflect annual, sick and long service leave taken. Annual leave entitlements are to be regularly reviewed by the appropriate supervisors and arrangements made with employees with excessive entitlements to reduce these in accordance with Council policy.
2.4
Payment Electronic Funds Transfer
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(a) Certification for receipt of wages is not required if the salaries or wages are paid by electronic funds transfer into the employees nominated bank account or by cheque. (b) Where wages have been rejected and credited to Councils general operating bank account efforts will be made to contact the employee to arrange payment. (c) Under special circumstances relating to financial urgency or hardship of an employee Council delegate the Chief Executive Officer or other responsible officer to make a cash advance from which payments for wages earned but unpaid may be made. No such payment shall exceed the amount of wages earned and the cash advance shall be reimbursed on the next date on which wages are paid. 2.5 Payroll Tax File Numbers The Manager Corporate and Payroll Officer Payroll are the only staff to have access to employee tax file numbers, which are stored and recorded in the payroll personnel files. 3. 3.1 GENERAL RECEIPTS AND DEBTORS SYSTEM Invoices Ensure that forms/records are maintained detailing all works undertaken which require invoicing. These records should be reviewed regularly to ensure prompt production of invoices, by the Payroll/Debtors Officer. Debtor invoices are to be sequentially (by computer) numbered and issued strictly in order. Standard charges are to be used when printing invoices. Adequate records of all debtors and the transactions relating thereto shall be kept. Account allocations are to be made or authorised by a responsible officer. All debtor journals raised shall be reviewed by the Manager Corporate Services on a monthly basis.
3.2
Receipts/Banking All cheques shall be crossed "Not Negotiable" on receipt. A computer listing of all cheques received is to be produced daily. All moneys received by Council shall be recorded by an entry for each individual transaction. The payer shall be issued with a copy of a receipt on request.
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The receipt or cash receipt record shall indicate the mode of payment. All receipts contained in receipt books or loose-leaf receipts shall be printer or machine numbered and the receipts issued in numerical sequence. All unused receipt books and loose-leaf receipts shall be kept in the custody of the responsible officer who shall maintain a register of such. Receipt or receipt records contained in books or loose-leaf receipts shall be so arranged as to provide for the retention of a copy of each receipt issued of the relevant details thereof. The original of every cancelled receipt shall be retained. Any reversed receipts are to be independently authorised. Floats/cashiers' balances are to be counted daily and reconciled to receipts listing and banking for the day. Receipts listing are to be signed by the appropriate cashier. Discrepancies are to be promptly followed up. For cash collected off-site regular random independent checks of cash collection to be undertaken. Banking is to occur on a daily basis, where practicable.
3.3
Reconciliations Debtors ledgers (rates and others) are to be reconciled monthly to the General Ledger Control Accounts. This reconciliation is to be evidenced as reviewed by the Manager Corporate Services and a copy of advice forwarded to the office of Councils auditor. Any discrepancies are to be immediately investigated. Aged debtor listings are to be regularly produced and reviewed and ongoing outstanding debts followed up (note: bad debts, with respect to rates, should only be written off where sale of property would not cover the value of the debt. Bank reconciliation are to be prepared monthly and evidenced as reviewed by the Manager Corporate Services. Any unusual/irregular reconciling items are to be immediately investigated.
4. 4.1
RATES Determination of Rates Rate charges, amounts, minimum values and concessions are to be set by Council. Amounts to be charged are to be gazetted. Property values are to be downloaded directly from the disc provided by the Valuer General's Department onto the Council's system.
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All updates received from the Valuer General are to be promptly processed and capital values re-reconciled. Parameters entered (ie rate/$, minimum rate, concession etc) are to be authorised by the Manager Corporate Services. Any changes to these parameters are to be made only by authorised persons.
4.2
Rate Notices/Generation A reconciliation is to be performed when valuation supplementaries are updated on the system to check that the total capital value of properties in the Valuer Generals report (printout) equals that contained in Councils assessment records. Total value of rates generated is to be compared to the value as budgeted and approved by Council. Large variances should be investigated. Sample of rate notices are to be randomly checked to ensure that: (a) correct rates have been used: (b) concessions have been correctly calculated; (c) discounts are correctly calculated; (d) name, address and rate details are correct; (e) correct valuations have been used.
5. 5.1
FIXED ASSETS Additions and Disposals Fixed assets are only to be purchased in accordance with Council's Policy: Tenders Purchase/Sale/Disposal of Goods and Services. On acquisition: (a) assets are to be added to the fixed assets register; (b) useful life of the individual asset is to be estimated; (c) basis of depreciation (ie straight line or reducing balance method) is to be decided; (d) rate of depreciation is to be calculated; (e) asset is depreciated from date first used or held ready for use; (f) above details to be documented in Asset Register; On disposal: (a) asset is to be depreciated to date of disposal; (b) accumulated depreciation and cost of the asset are to be written back in the general ledger and removed from the fixed asset register; (c) profit/loss on disposal is to be calculated. This calculation should be prepared or authorised by the Manager Corporate Services. Depreciation: Delegated authority has been given to the Manager Corporate Services and Works Manager to determine the appropriate method and rates of depreciation to be used for Council's assets.
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5.2
Classification and Capitalisation Policies Council has set a minimum threshold for recording assets, taking into consideration their materiality. Under this threshold, the cost of that item is to be expensed in the year it was purchased or constructed. Above this threshold, the item is to be recorded as a capital asset and depreciated over its useful life. Council has adopted the following thresholds: Plant and Equipment Office Furniture and Equipment Land Buildings Roads Bridges, Footpaths Stormwater Drainage Other Community Assets These thresholds are to be reviewed annually. $5000 $5000 $5000 $5000 $5000 $5000 $5000 $5000
5.3
Recording/Registers Fixed Assets Registers are to be maintained for all assets controlled by Council, identifying significant asset components. (Refer to Item 8 for details). Wherever possible assets should be recorded as separate items in the registers. A physical count of all fixed assets per the fixed register is to be undertaken bi annually. All discrepancies are to be investigated and the condition of the assets noted. Registers are to be regularly reviewed, noting unusual items or items included in fixed assets, which have been sold or scrapped. Authorisation is to be obtained before any items are deleted from the registers (due to sale or scrapping).
5.4
Year End Considerations Fixed Assets Register should be reviewed to consider: (a) carrying value of assets; (b) existence of assets;
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(c) condition of assets: (d) relevance of current depreciation rates given the condition of the assets; 5.5 All assets shall be revalued at least every five years.
Other Security arrangements shall be regularly reviewed and improved where they have become inadequate. Arrangements shall include restricting access and protection from accidental destruction, deterioration, theft or fraudulent or illegal use. Insurance The Chief Executive Officer with the consent of Council, is to commission a revaluation of properties for insurance purposes at least every five years utilising qualified and experienced consultants.
6. 6.1
STOCK Stock Records Stock records are to be kept for bulk fuel/lubricants and quarry stock raised and purchased.
6.2
Issues and Returns All issues of stock items are to be documented including details of items issued, when and to which plant issued. The Works Supervisors are responsible for preparation of fuel issue sheets required. Issues are to be monitored to ensure timely ordering of stock items and to ensure items are not over-stocked, by the Works Supervisors.
6.3
Stocktakes Annual stocktakes are to be carried out on fuel and lubricants, supplies and quarry materials on hand, in addition fuel stocks are to be reconciled bimonthly. Stocktake to be carried out on the quantity and value of history books held for sale. Stocktake is to be supervised by a responsible officer.
6.4
Year End Considerations Average costing is to be applied to all Stock on hand be reviewed annually and should reflect average cost or replacement values in valuation.
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7. 7.1
Discrepancies are to be investigated and any adjustments to the value of stock on hand made by appropriate journal entries.
GENERAL LEDGER Journals Journals may be raised only by Councils accounting staff and checked on a monthly basis by the Manager Corporate Services. Sequentially numbered journals are to be used.
7.2
General Control and clearing accounts are to be reconciled monthly, and clearing and suspense accounts are to be regularly cleared. These reconciliations are evidenced as reviewed by the Manager Corporate Services. Minutes of Council and Committee meetings are to be promptly prepared and distributed within five days of each meeting. The chart of accounts is to be regularly updated to ensure correct account allocations are made. Budgets are to be reviewed in compliance with Local Government Regulation 7, Councils and subsidiaries must reconsider budget at least 3 times at intervals not less than 3 months between 30 September and 31 May (both dates inclusive). Management reports are prepared monthly and reviewed so that variances to budget are explained and necessary action taken to rectify.
8.
COMPUTER SYSTEM The following procedures shall be adhered to for the Synergy System.
8.1
Computer Security Each user of the system be allocated an individual login name, login password and user password to gain access to the system. User passwords limits user access to areas of the system that are necessary only for their work areas. E.g. Payroll, maintenance systems etc are not available to most users. Maintenance of user login names and passwords are under the control of the Manager Corporate Services. Management of the Synergy System is under the control of the Manager Corporate Services.
8.2
Backups
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Full backups of all data processing to be conducted every night. Portable hard drives to be rotated on daily, weekly and monthly basis. Portable hard drives be kept in the strong room with a weekly backup (normally scheduled for a Thursday) to be transferred between both Council offices so a back up of no longer than one week old is retained off site.
9.
REGISTERS The following Registers to be maintained:
9.1
Leased Road Reserves Register To record for each lease: 1. Lessee - name and address 2. Date of lease 3. Details of annual rental 4. Particulars of lease 5. Area leased 6. Remarks 7. Minute book reference Register Of Accountable Documents Including Order Books Receipts, Receipt Book, Licences And Invoices To record: 1. Date of receipt of stationery 2. Number received 3. Serial numbers 4. To whom issued 5. Authority for issue 6. Signature of person to whom issued 7. Record of return. Personnel Records To record: 1. Name and address of employee 2. Date of birth 3. Date of commencement of employment 4. Date of cessation of employment 5. Award classification 6. Next of kin 7. Qualifications 8. Training courses undertaken 9. Previous employment with Local Government authorities (a) Council (b) Date commenced (c) Date terminated (d) Amount due from previous employee (e) Entitlements transferred from previous employer 10. Subsequent employment with Local Government authorities (a) Amount due to subsequent employer (b) Amount paid (c) Date paid (d) Balance due (e) Date paid 11. Recreation and Special Leave Record
9.2
9.3
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12.
(a) Leave entitlement (b) Leave taken (c) Balance period (d) Remarks Sick Leave Record (a) Leave entitlement (b) Leave taken (c) Balance period (d) Remarks 13. Long Service Leave Record (a) Leave entitlement (b) Leave taken (c) Balance period (d) Remarks (e) Amount due from previous Council-employers (f) Council (g) Amount due (h) When paid.
9.4
Moieties To record: 1. Name of street 2. Details of work 3. Cost of work per metre (a) Roadworks (b) Drainage works (c) Watertables (d) Kerbing (e) Footways 4. Date work commenced 5. Date work completed 6. Date of notice to owner requiring payment 7. Recoveries of previous costs from owners (a) Date (b) Total amount recovered from owner (c) Amount per metre recovered from owner 8. Details of work declared by Council to be work, which is satisfied, is work other than that of a permanent nature (Section 319 (7)). Debentures Issued Register To record for each debenture issued by Council: 1. Series and number of debenture 2. Date of issue 3. Name of entity/person issued to 4. Amount of principal 5. Rate of interest 6. Security for loan (state whether general rate or special rate and particulars thereof) If loan is repayable by periodical instalments of principal and interest: 7. Amount of half-yearly instalments 8. Date of payment of half-yearly instalments 9. Principal outstanding at beginning of each half-year 10. Portion of half-yearly instalment applied to interest 11. Portion of half-yearly instalment applied to principal
9.5
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12. 13. 9.6
Dates of payment of principal Dates of payment of interest.
Land and Buildings and Leases Register 1. Location of property 2. Description of property and improvements 3. Title deed reference 4. Vendor - name and address 5. Date of purchases 6. Purchase price 7. Date of details of improvements 8. Value of improvements 9. Date of revaluations 10. Details of revaluations 11. Book value at end of each financial year 12. Sale proceeds 13. Annual depreciation 14. Depreciation method 15. Surplus/deficit on disposal 16. Date of disposal 17. Date of lease 18. Lessee - name and address 19. Term of lease 20. Rental details 21. Date of expiry of lease 22. Remarks on lease clauses 23. Status of land. Plant and Machinery Register To record for each item of plant and machinery for which a hire rate is charged. 1. Description 2. Purchase price (gross) 3. Asset value as per general ledger 4. Annual depreciation 5. Book value at end of each financial year 6. Depreciation method 7. Sale proceeds 8. Surplus/deficit on disposal 9. Asset number Office Furniture and Equipment Register To record for each asset or for each type of asset: 1. Description 2. Purchase price (gross) 3. Asset value as per general ledger 4. Annual depreciation 5. Book value at end of each financial year 6. Depreciation method 7. Sale proceeds 8. Surplus/deficit on disposal 9. Date of disposal 10. Location of asset 11. Asset number 12. Serial numbers of computer equipment
9.7
9.8
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9.9
Licences Issued Register To record for each type of licence: 1. Licensee 2. Date of issue 3. Term of licence 4. Licence fee 5. Particulars of licence 6. Remarks 7. Minute book reference (if applicable). Register Of Deferred Debtors To record each long term debtor detail: 1. Description 2. Original debt to Council 3. Term of debt 4. Interest charged 5. Payment amount 6. Payment records Infrastructure Register 1. Location of property 2. Description of property and improvements 3. Title deed reference 4. Vendor - name and address 5. Date of purchases 6. Purchase price 7. Date of details of improvements 8. Value of improvements 9. Date of revaluations 10. Details of revaluations 11. Book value at end of each financial year 12. Sale proceeds 13. Annual depreciation 14. Depreciation method 15. Surplus/deficit on disposal 16. Date of disposal 17. Date of lease 18. Lessee - name and address 19. Term of lease 20. Rental details 21. Date of expiry of lease 22. Remarks on lease clauses 23. Status of land. Land Held For Resale Register 1. Location of property 2. Description of property and improvements 3. Title deed reference 4. Vendor - name and address 5. Date of purchases 6. Purchase price 7. Date of details of improvements 8. Value of improvements 9. Date of revaluations 10. Details of revaluations
9.10
9.11
9.12
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11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 9.13
Book value at end of each financial year Sale proceeds Surplus/deficit on disposal Date of disposal Date of lease Lessee - name and address Term of lease Rental details Date of expiry of lease Remarks on lease clauses Status of land.
Guarantors Register 1. Body guaranteed 2. Guarantee held by 3. Original value 4. Term/repayment schedule 5. Description 6. Present current value Petty Cash Cash payments may be made out of a petty cash account established by Council, and held by the Councils administration officers of each Council Office and Councils Child Care Manager/staff. A cash payment cannot, in respect of any particular docket or voucher, exceed $100. Petty cash transactions shall be recorded and supported by dockets or vouchers and signed by the appropriate authorised officer before reimbursement is made. Petty cash shall not be utilised for I owe yous. Each transaction is to indicate the specific nature of the expenditure.
9.14
9.15
Safe - Storage The following items shall be kept within the safe storage room of the Council offices: Original copies of all leases, debentures, contracts and agreements. C/Titles of properties owned by Council.
All cash not banked from cash register, petty cash and unclaimed wages. Original copies of timesheets and documents, for period of twelve months. Unused purchase order books, vouchers and cheques. Minute books of Council. Original copies of all computer applications and programs.
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Daily portable hard drives for main Computer system, PC network system (disks are to be reused after a week with the exception of Thursdays disk/tape to be rotated every 4 weeks).
Keys to the safe storage rooms are restricted to the Chief Executive Officer, Manager Corporate Services, Executive Assistant and Administration Officers. 10. RESPONSIBLE AND AUTHORISED PERSONS
10.1.1 Purchase Orders - Signing of Orders Limit Chief Executive Officer Manager Corporate Services Works Manager Manager Environmental & Planning Works Supervisors Mechanic Executive Assistant Payroll, Creditors, Rates, Reception, Assets & OHS officers Fire Prevention Officer $20,000 $20,000 $5,000 $5,000 $5,000
Those persons acting in any of the above positions Holding of unused purchase order books - Administration Officers. 10.1.2 Works Orders Signing of Orders Limit 10.2 Chief Executive Officer Manager Corporate Services Works Manager Manager Environmental & Planning Works Supervisors Mechanic Executive Assistant Payroll, Creditors, Rates, Reception & Assets & OHS officers Fire Prevention Officer $20,000 $20,000 $5,000 $5,000 $5,000
Cheque Payments, EFT Payments - Signing of Cheques (any two of the following officers) - Chief Executive Officer - Manager Corporate Services - Works Manager - Payroll or Creditors Officer - Any councillor
10.3
Reconciliations Creditors Control Account to General Ledger - Creditors Officer - Manager Corporate Services New Creditors Account - Manager Corporate Services - Creditors Officer
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10.4
Adjustments to Employees Salary/Wage Rates - Chief Executive Officer - Manager Corporate Services Review of Payroll reports and certification - Manager Corporate Services Leave Application Forms - Chief Executive Officer - Manager Corporate Services - Works Manager - Manager Environmental & Planning - Child Care Manager Regular Debtors review all invoices as required - Payroll Officer Account Allocations - Creditors Officer Private Works - Works Manager - Payroll Officer Hire Rates - Manager Corporate Services - Works Manager Review Debtor Journals - Manager Corporate Services
10.5
10.6
10.7
10.8
Cash Receipting front counter - Administration officers Cheque Receipting Through Mail System - Administration officers
10.9
Debtors Reconciliation Control a/c to General Ledger - Creditors/Payroll officers - Manager Corporate Services New Debtor a/c - Payroll Officer Bank Reconciliations - Creditors Officer
10.10 Rates parameters authorisation (any one of the following officers) - Chief Executive Officer - Manager Corporate Services 10.10.1 Parameter Changes - Rates Officer
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10.11 Rates Reconciliation - Manager Corporate Services - Rates Officer 10.12 Checking Rate Notices - Rates Officer 10.13 Reconciliation Fixed Asset Register - Manager Corporate Services - Creditors Officer - Assets Officer Authorisation to Delete Assets - Manager Corporate Services 10.14 Stocktakes Supervision By - Manager Corporate Services - Works Manager 10.15 Journal Authorisation General Ledger - Manager Corporate Services - Payroll, Assets and Creditors officers Rates - Manager Corporate Services - Rates Officer 10.16 Minutes maintaining files of minutes books/ensure they are signed - Executive Assistant 10.17 Investments Repayments/Drawdowns with Financial Institutions (any two of the following officers) - Chief Executive Officer - Manager Corporate and Community Services - Payroll and Creditors officers 10.18 Petty Cash Authorised Officers - Administration officers - Child Care staff 10.19 Registration of Dogs - Administration officers
10.20 Property Searches - Chief Executive Officer - Manager Corporate Services. 10.21 Receiving Goods and Checking off Order - Originator of Order
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10.22 Access to Administrator System 10.22.1 Full System Access - Manager Corporate Services - Creditors or Payroll officer Full Access to Payroll - Payroll Officer - Manager Corporate Services Payroll Timecard Entry - Payroll officer - Manager Corporate Services Full Creditor Access - Creditors Officer - Manager Corporate Services Full Debtor Access - Payroll Officer - Manager Corporate Services Full Rates/Property Access - Rates Officer - Manager Corporate Services Full Development Access - Development Support Officer - Manager Environment & Planning Financial Modelling Access - Manager Corporate Services - Chief Executive Officer - Rates Officer Building System - Development Support Officer - Manager Environment & Planning Stores System - Creditors officer - Rates Office Dog Control - Full access by all users Cemeteries - Full access by all users Assets System Access - Manager Corporate Services - Creditors or Payroll officer
10.22.2
10.22.3
10.22.4
10.22.5
10.22.6
10.22.7
10.22.8
10.22.9
10.22.10
10.22.11
10.22.12
10.22.13
No users, other than listed above, have any access to the payroll module (including enquiries).
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Other than listed above, access to all maintenance areas is barred to all other users. Access to enquiries, reports, listings etc is available to all users. Access to all modules that are not being used is available to all users. 11 11.1 PERMITS Removal of Timber from Roadsides (Sec 374) Permit - Chief Executive Officer - Works Manager - Manager Environment & Planning - Executive Assistant Hall Hire Permit - Chief Executive Officer - Manager Corporate Services - OH & S Officer - Executive Assistant Street Stall/Raffle Permit - Chief Executive Officer - Manager Corporate Services - OH & S Officer - Executive Assistant Special Event Permit - Chief Executive Officer - Manager Corporate Services - OH & S Officer - Executive Assistant Overweight/Size Vehicle Permit - Chief Executive Officer - Works Manager Cutting of/Storage hay on roadsides - Chief Executive Officer - Manager Environmental & Planning - Works Manager Notices - Chief Executive Officer - Manager Corporate Services - Works Manager - Manager Environmental & Planning - Child Care Manager SUBSIDIARIES Audit to Council Audited financial accounts of subsidiaries Section 42 be submitted to Council by 30 September each year; other than those whose accounts are managed through Councils Accounting System (Section 41 Committees).
11.2
11.3
11.4
11.5
11.6
11.7
12. 12.1
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13.
TENDERS CALLING OF Tenders shall be invited where the cost (or net cost after trade-in allowances) is likely to exceed $30,000. Tenders invitation, receipt and evaluation procedures 13.1.1 General Tendering can be initiated by one of the three basis tendering procedures: Public Tenders All interested parties are invited through open public advertisement to tender on a common basis; Selected Competitive Tenders A limited number of organisations are directly selected because of their proven experience or recognised ability to undertake particular work. Tenders will be on a common basis Negotiated Tenders A firm tender is arrived at by negotiation with a limited number of organisations. State Government Tenders Where appropriate Council may wish to utilise the State Government Tender process for major construction or works
13.1
13.1.2 Invitation of Tenders 1 Public Advertisement - Consistency in advertising should apply; - There should be a set day for advertising and set day for closing of tenders; - The tender closing time may be 2.00 pm on a week day but not on the day following a weekend or a public holiday; - Advertisements shall show: An adequate description to allow tenderers to judge their interest Centres where tender documents are available Place of lodgement and closing date and time - Advertisements should be inserted in the most appropriate papers. Selected Competitive Tenders and Negotiated Tenders - Selected competitive and negotiated tenders are invited when it is impractical to invite public tenders; - Where public tenders have been invited and no tender has been received or any tender received is not acceptable, selected or negotiated tenders may be invited. Pre-Registration of Tenderers
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The objective of pre-registration is to pre-qualify tenderers in respect of their capacity and ability to undertake Works and so reduce the time taken for investigation after tenders have closed. Pre-registration should only be used when it can be demonstrated that it has advantages to the Council over the invitation of public tenders. Advance notice can lead to a shortening of the tendering period. Because registrations may be construed as an understanding to accept a tender from the lowest tenderer it is essential that investigation of applicants be thorough. Any registered firm which subsequently submits the lowest tender should be able to be confidently recommended for acceptance unless the circumstances, under which the firm was registered, have changed substantially. Those firms regarded as unsuitable for registration must be informed accordingly, with reasons. When tender documents are ready, tenderers who have been registered should be invited in writing to tender. 4 Tendering Period The tender period must allow for the urgency of the work, with sufficient time for tenderers to visit the site, to study the tender documents, and prepare an offer. Clarification of Documents During the Tender Period Requests for clarification shall be referred to a single officer nominated in the tender documents. Where considered necessary, all explanations and/or clarifications given should be confirmed in writing and issued to all prospective tenderers to ensure that all tenders submitted are on a common basis. 6 Pre-tender Meetings Pre-tender meetings may be called. The objective is to clarify intent and any uncertainties that tenderers may have relating to the tender documents. Extension of Tendering Period It is essential all tenderers who obtained documents are notified of any extension to the tendering period. Highest or Lowest Tender All tender documents shall include the following statement NEITHER THE HIGHEST NOR THE LOWEST TENDER WILL BE NECESSARILY ACCEPTED.
13.1.3 Receipt of Tenders
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Lodgement of Tenders Tenders must be lodged at the Council Office listed in the tender documents. Tenders should be accepted up to 2.00 pm local time on the closing date. The tender box is to be locked with the keys held by responsible Officers. Where it is not possible to place all tenders and supporting pages in the tender box, special and secured storage facilities, will be provided in advance of the tender closing date. Tender papers not placed in the tender box, shall be endorsed by the receiving Officer with details of receipt and placed in the secured storage. The organisations electronic media shall be attended before the time at which tenders close. The media shall be stamped with the time of receipt. Where a price received by electronic media through official Australia Post services differs form the price submitted on the tender form, the former price will prevail unless it can be established that the Postal Authority made an error in transmission. Tenders received through the post must be endorsed with the exact time of receipt. When envelopes containing tenders have been opened due to lack of identification, they should be immediately resealed, the envelope suitably endorsed and referred to the Responsible Officer. At 2.00 pm on the tender closing date, the tender box shall be closed to prevent lodgements of late tenders in the box. No tender price offered orally will be accepted.
Tender Opening Procedure Pursuant to councils Statutory Resolutions and the provisions contained in the Local government Accounting Regulations the following are authorised to open any formal tenders received after the appointed closing date: Chief Executive Officer Manager Corporate Services Works Manager Manager Environment & Planning In all instances any two of the above authorised persons or their nominees, must be in attendance when opening any tenders received and shall sign an endorsement to the schedule of the tenders received including the time of opening of the respective tenders and shall submit a report and recommendations to the appropriate Standing Committee or Council meeting. (Refer to Local Government Accounting Regulations 14)
Late Tenders A tender received after the nominated closing time that is:
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Policy Register
Delivered by hand over the counter; Delivered by electronic media; Received through the mail.
Shall be deemed late and shall be endorsed with the exact time of receipt. A person presenting a tender over the counter shall be asked to initial the endorsement. A late tender is to be opened and scheduled and the schedule endorsed with the time and circumstances of receipt. The envelope enclosing a late tender is to be attached to the tender. A late tender delivered by hand over the counter shall not be admitted. A late tender submitted through official Australia Post services or electronic media will not be admitted unless it can be clearly established to the satisfaction of the Opening Committee that they were posted or transmitted before the date and time for closing tenders and in the advertisement or other invitation for submission of tenders by that date and time. No other form of transmission will be considered for tenders received after the date and time for closing tenders. As the time required for delivery or transmittal varies significantly between different points of dispatch and delivery, the onus is on the tenderer to ascertain what is sufficient time in the particular circumstances for the service selected. Franking machine impressions are not acceptable evidence of timely posting or dispatch nor are the times indicated on electronic media transmitted through private channels. A tenderer whose tender is rejected as being late must be advised promptly. Adequately safeguards should be used to ensure the preservation of the confidentiality of tenders which are received late and are not admitted for consideration. 13.1.4 Evaluation of Tenders 1 Qualifications Formality of Tender A tender which does not comply with the tender documents is liable to be rejected. The tenderer may be given reasonable opportunity to comply with the tender documents but only without alterations to the submitted tender price. Where a tenderer claims an error has been made in calculating the tender or has omitted to include a provisional sum the tenderer shall not be permitted to amend the tender price.
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Policy Register
In such situations, the tenderer has the options of adhering to or withdrawing the tender price, or being passed over. 2 Alternative Offers Alternative offers are not considered unless provided for in the documents. Where an alternative is offered by a tenderer, that alternative cannot be priced by any other tenderer. 3 Negotiations There are occasions where negotiation of a tendered price may have to be considered before a tender is accepted, e.g significant errors and omissions in documents, insufficient funds to cover tenders received. In such instances negotiations of a price for the amendments to the tender documents will be concluded prior to acceptance with the lowest acceptable tenderer only, notwithstanding that the estimate or the price received for the amendment when added to the lowest acceptable tender may exceed other tenders. If the value of the amendment in relation to the tender price is significant and a satisfactory price cannot be negotiated with the lowest acceptable tenderer, it may be necessary to recall tenders. 4 Equal Tenders Where two or more tenders are acceptable and the prices are identical, preference will be given to the tender opened first, subject to consideration of EVALUATION OF TENDERERS (See (5) below). Evaluation of Tenderers Evaluation should consider tenderers: - Technical, management, physical and financial capacity - Current commitments - Standing within the Industry - Record of Performance - Ability to perform the Works Re- Tendering Re-tendering should be avoided unless the tender documents have been amended or a substantial period of time has elapsed since tenders were initially invited. Should it be decided following public tenders to recall tenders on a selected basis, opportunity should be given to each original tenderer to submit a price unless there are good reasons for not doing so. 7 Security Adequate safeguards must apply to ensure the confidentiality of tenders.
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Confidentiality The Council or Standing Committee may consider tenders in accordance with Section 90 of the Local Government Act.
13.2
Tender Consideration All tenders are to be submitted to a Standing Committee or Council for consideration. The appropriate officer shall prepare a report on the tenders received and shall make a recommendation as to the tender to be accepted. All unsuccessful tenders are to the notified of the decision of Council.
14
QUOTATIONS FOR WORKS, SERVICES AND EQUIPMENT The procedure to be followed in the calling, receipt and consideration of quotations to be as follows: (a) Quotations may be invited where the cost (or net cost after any tradein allowances) is likely to be between $2,000 and $20,000. Tenders in lieu of quotations may be called at the discretion of the Chief Executive Officer. (b) Quotations are to be obtained (from at least two local suppliers or distributors where possible) for purchasing supplies for works, services and equipment. Tenders are to be called where the cost (or net cost after trade-in allowance) is likely to exceed $50,000 Refer Policy 26 Tenders for policy details on tenders and procedures. (c) The Chief Executive Officer or nominated person may negotiate with all those involved in the quotation process and purchase any single item by way of a quotation provided; The net cost does not exceed $50,000 And Such work service and or equipment is within budget Or The cost (or net cost after any trade-in allowances) does not exceed the adopted (or varied) Budget by more than 10%.
(d)
A written record shall be kept of all quotations received, and it the lowest price was not accepted, the relevant reasons shall be stated. It is not necessarily a requirement of this policy that public notification be given for the inviting of quotations.
(e) 15.
PROVISION OF SERVICES
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A Key Goal of Council aims for continuous improvement in the efficient and cost-effective delivery of services through the incorporation of modern management practices. Policy Statement Council will provide quality services that meet customer needs by utilising resources (physical, financial and human) efficiently and effectively. Principles In accordance with this policy the following principles will be adopted in determining core and non-core services which are to be used as a basis in determining the most appropriate method of delivering Council services. 16 16.1 Strategic and corporate planning goals and objectives are to be met Services are to be provided at minimal risk to Council Services are to be provided within Councils existing resource levels There is to be no negative effect on disadvantaged groups All statutory obligations are to be met There must be sufficient competitors in the market place Councils ability to respond to emergency services must not be put at risk Councils service providers may compete externally for work as long as Council and Councils services are not at risk.
PURCHASING OF GOODS SERVICES AND EQUIPMENT Value Under $2,000 Best price to be obtained, taking into account quality of goods and services, delivery time, past experience, freight costs involved, urgency of delivery etc. To be authorised by Purchasing Officer. Value Over $2,000 less than $30,000 At least two quotations or tenders to be obtained, purchase form to be completed and kept on file as per Quotation Policy No. 26. Supplier to be selected as per 1 above. Purchase to be authorised by department Manager. Value Over $30,000 Tenders to be obtained as per Tender Policy No. 26. Where possible at least two tenders to be received. Tenders to be authorised by Council. Tenders to be retained on file. Approved Budget All goods and services ordered must be within budget parameters for that Department. Stock Levels Stock supplies should be kept to reasonable levels based on past usage. Local Providers
16.2
16.3
16.4
16.5
16.6
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Local providers of goods and services will be given preference where practicable and competitive with other providers. 17 SALE OR DISPOSAL OF LAND OR OTHER ASSETS
17.1
Land In sale or disposal of land, Council will comply with the community lands provisions of Chapter 11 of the Local Government Act 1999. In negotiating sale of land above the value of $20,000, Council shall have reference to an independent valuation of the land. Where Council initiates sale of land which is surplus to its requirements to parties other than the adjoining owner, it shall normally publicly list the land for sale at a price determined by Council with reference to an independent valuation with one or more local real estate agents.
17.2
Other Assets In the case of other assets including plant and equipment; 17.2.1 Under $2,000 May negotiate best price with interested parties. 17.2.2 $2,000 - $5,000 Advertise locally for tenders or sale at price fixed by responsible manager based on asset value. 17.2.3 Above $5,000 advertise for sale by tender.
18.
FEES AND CHARGES (not set by statute) A schedule of fees and charges shall be prepared by the Manager Corporate Services in liaison with other Council Managers. The schedule shall include, but not be restricted to, such items as gate fees public waste facilities, swimming pool fees, moiety fees, lease of road reserve fees and cemetery burial fees.
19.
ISSUE OF PURCHASING CARDS AND/OR FUEL CARDS The Chief Executive Officer may make available purchasing cards to Council Managers, Council Mechanic and Works Supervisor Council Managers with approval of the Chief Executive Officer may issue fuel cards to Council staff. Register: A register of purchasing cards and/or fuel cards issued will be maintained by Councils Manager Corporate Services and a copy of this authority is to be provided to the Chief Executive Officer. Agreement by Staff:
I ___________________________ , hereby agree to adhere to the following (Full name)
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conditions in the use of the Councils purchasing and/or fuel card (whichever is appropriate) issued to me; 1. To only use the purchasing card and/or fuel card for the Council authorized purchases under my responsibility. 2. To only use the fuel card in this vehicle(s) for authorised Council use and travel as required in the course of my duties unless otherwise varied in terms of this agreement (section 3) or as authorised by my Manager. 3. Special Conditions ______________________________________________ ________________________________________________________________ ________________________________________________________________ Signed ____________________________ Dated ___/___/___ Authorised by ______________________ Manager
ADOPTED: 13th October 2010 NEXT REVIEW DATE: October 2012 AMENDED: 13th October 2010
Certified Copy by Chief Executive Officer or approved Delegate .... DATE: ././.
SIGNATURE:
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Southern Mallee District Council